Reading articles with expert content, including a collection of tips for dealing with the commercial real estate market, is a great place to begin, when you’re just starting out. Below is just such a collection that can assist the eager novice into eventually becoming a pro when it comes to buying or selling commercial real estate.
Some factors to consider before making a big investment into real estate are the expanding or contracting of nearby employers, local income levels, and the rate of unemployment. If you’re house is close to a university, hospital, or large employment center, they sell quick and at increased values.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. This is especially important when an area is known to have pest and rodent problems. Prior to signing a lease, ask your agent what the current pest control policies are.
If you rent or lease the commercial properties you own, keep them occupied as much as possible. Vacancies cost you money, because you have to pay for maintenance and upkeep without drawing income from them. If you notice that you have several vacant properties, try to find out why, and look at ways of enticing tenants back in.
Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.
The area in which the property is located is important. Purchasing in neighborhoods that are in the upper price per square foot range will help for successful business because the surrounding owners have more money to spend. If the products and services you offer are more middle class or less affluent, then purchase in an area where there are more buyers suited to your business.
Take a tour of properties you are considering. Think also about having a professional contractor tag along aside you when you look over these properties. Use what you see in these tours to determine a fair opening offer. Closely review any counteroffers you receive prior to making a final decision. Remember the decision is an important one, so take your time.
When you are composing a letter of intent, you should emphasize simplicity by negotiating on the bigger issues first, then addressing the minor issues later in the negotiations. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.
Well, hopefully the aforementioned collection of tips were enough to give you a great start on what to do and expect when it comes to buying or selling commercial real estate. Remember to apply these tips and work on improving your skills linked to property hunting and negotiating.